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Real Estate Practice Exam Questions and Answer Latest Update, Exams of Real Estate Management

The UCL School of PharmacyReal Estate Management

Real Estate Practice Exam Questions and Answer Latest Update Real Estate Practice Exam Questions and Answer Latest Update

Typology: Exams

2024/2025

Available from 06/19/2025

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Real Estate Practice Exam Questions
and Answer Latest Update
1. Brokerage definition... - Answer-the business
practice of bringing together the parties in a practice.
2. What are two examples of special use property? -
Answer-schools and cemetary
3. What is an example of functional obsolescence? -
Answer-bathroom
4. Principal definition... - Answer-a consumer of real
estate services who has entered into an agency
relationship with a broker or another licensee
employed by a broker.
5. Capitalization definition... - Answer-the process of
determining the present value of a property from it's
future income.
6. What is the salespersons obligation to a buyer
under single agency listing? - Answer-Inform the
buyer
8. All are examples of real estate except... -
Answer-factories
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Real Estate Practice Exam Questions

and Answer Latest Update

  1. Brokerage definition... - Answer -the business practice of bringing together the parties in a practice.
  2. What are two examples of special use property? - Answer -schools and cemetary
  3. What is an example of functional obsolescence? - Answer -bathroom
  4. Principal definition... - Answer -a consumer of real estate services who has entered into an agency relationship with a broker or another licensee employed by a broker.
  5. Capitalization definition... - Answer -the process of determining the present value of a property from it's future income.
  6. What is the salespersons obligation to a buyer under single agency listing? - Answer -Inform the buyer
  7. All are examples of real estate except... - Answer -factories
  1. What is homeowners insurance? - Answer - Insurance to protect owners from fires and other etc.
  2. Special agent definition... - Answer -the type of agency in which the principal authorizes the agent to represent the agent in "one specific transaction or business activity"
  3. Which is not used to determine cost approach to estimate value? -Quantity Survey Method -Unit-in-Place Method -Square Foot Method -Gross Rent Multiplier Method - Answer -Gross Rent Multiplier Method What is steering? - Answer -the unlawful act of keeping a buyer away from certain communities or guiding them to purchase in certain communities.
  4. Entitlement to commission when transaction is not consummated. - Answer -Except when listing broker does not disclose information
  5. Can a salesperson give legal advice? - Answer - No, not unless they are an attorney.
  1. The main factor a property manager should use to evaluate a prospective tenant is - Answer -can they make monthly rent payments on time.
  2. All are examples of single agency disclosures with the exception of - Answer -revealing the owner will except less.
  3. What is the most reliable method of appraisal for residential real estate? - Answer -Sales comparison approach
  4. Assemblage definition... - Answer -consolidating two separate lots into one.
  5. What would not be a depreciation of value? - Answer -Unimproved land
  6. What has the greatest effect on real estate value? - Answer -Demand of people and location
  7. What rules require fair housing laws to be in a listing contract? - Answer -PA Human Relations Act
  8. Typically who pays for title insurance? - Answer - Buyer
  1. What is the transfer tax charged by the state of PA? - Answer -1% of the sales price
  2. What should you do about material defect disclosures? - Answer -inform the buyer and seller
  3. What is private mortgage insurance? - Answer -It protects the lender if their is default
  4. What is the first step in the appraisal process? - Answer -Indicate objective of appraisal
  5. What is an example of external depreciation? - Answer -Nearby property that suffers from lack of maintenance and is negatively affecting the sellers property.
  6. Who does a selling salesperson represent under buyer agency? - Answer -Buyer
  7. What is not an example of a real estate business violation of the antitrust laws? - Answer -opening offices in new locations
  8. Equity definition... - Answer -the value of real estate above any debt on that property.
  1. Exclusive Right to Sell Listing definition... - Answer -A type of listing to list and sell real estate property in which the seller employs one broker but that broker earns a commission "no matter who sells the property including the owner"
  2. What type of property would be most appropriate to use the cost approach method? - Answer -25 year old church
  3. Definition of appraisal... - Answer -supportable estimate of value
  4. What is the PA law that prohibits discrimination in housing? - Answer -PA Human Relations Act
  5. Is special price setting allowed for certain categories of people? - Answer -No it's illegal
  6. When is the consumer notice given? - Answer - At the first discussion of needs and motivation.
  7. What are the conditions to when an agreement of sale becomes a binding contract? - Answer - When the buyer accepts the offer and the seller is notified.
  1. What does the C stand for in the fiduciary dities - Answer -Care and confidentiality
  2. Characteristics of sale and leaseback... - Answer -buyer becomes lessor
  3. What is a broker's obligation to a buyer without buyer agency? - Answer -Give the agreement of sale
  4. Redlining definition... - Answer -the unlawful practice of refusing real estate related business services based on location of a person's real property. ie: lending institutions or insurance companies
  5. What is a way of termination a listing agreement? - Answer -Bankruptcy Court
  6. What is a type of depreciation that is not curable? - Answer -external depreciation
  7. Disclosure requirements to a seller under a listing agreement force brokers to disclose info except... - Answer -the buyer had AIDS
  8. Sale and leaseback definition... - Answer -a combination real estate transaction where there is both a sale of real property by an owner and then an
  1. Earnest money deposit is a credit to whom - Answer -to the buyer
  2. Convert 3 mills to a decimal - Answer -.
  3. Loan origination fee is a debit to whom? - Answer -buyer
  4. What is prorated by day on a HUD 1? - Answer - Interest on an assumed mortgage
  5. What is the source of money for an FHA loan? - Answer -A qualified lending institution
  6. What is the role of a mortgage broker? - Answer -To find mortgage lenders for borrowers.
  7. What is true about the contract rules regarding printed form sales agreement? - Answer - Handwritten words take precedent over printed words
  8. What is a shares appreciation mortgage? - Answer -The lender receives a share of capital gain at time of sale.
  1. Determine the value by the Income Approach formula - Answer -NET INCOME divided by RATE OF CAPITALIZATION
  2. Fiduciary responsibility in a property management contract is to the - Answer -lessor
  3. What is the formula for the Gross Rent Multiplier? - Answer -SALE PRICE divided by MONTHLY RENT
  4. All are federal income tax deductions for a homeowner except... - Answer -property management
  5. An example of an item that is prorated at settlement is... - Answer -Rental Income
  6. Paid tax is a credit to whom? - Answer -Credit to the Seller
  7. Selling agent represents who in a single agency listing agreement? (Scenario Question) - Answer - Dangerfield represents Crawford
  8. What represents dual agency? - Answer - broker with listing agreement and buying agreement
  1. What is the max profit a married couple can take on capital gain? - Answer -500k
  2. What is a fair housing exemption? (OLD PERSON COMMUNITY SCENERIO) - Answer - Familial Status